U.S. employers added 162,000 jobs in July, a modest increase and the fewest since March. At the same time, the unemployment rate fell from 7.6 percent to a 4½-year low of 7.4 percent.

The rate fell because more Americans said they were working, although some people stopped looking for a job and were no longer counted as unemployed.

Friday’s report from the Labor Department pointed to a less-than-robust job market.

It suggested that the economy’s subpar growth and modest consumer spending are making many businesses cautious about hiring.

The government also said employers added a combined 26,000 fewer jobs in May and June than it previously estimated. Americans worked fewer hours in July, and their average pay dipped. And many of the jobs employers added last month were for lower-paying work at stores, bars and restaurants.

For the year, job growth has remained steady. The economy has added an average 200,000 jobs a month since January, although the pace has slowed in the past three months to 175,000.

Nariman Behravesh, chief economist at IHS Global Insight, called the employment report “slightly negative,” in part because job growth for May and June was revised down.

Scott Anderson, chief economist at Bank of the West, said it showed “a mixed labor market picture of continued improvement but at a still frustratingly slow pace.”

The reaction from investors was muted. Stock averages closed with modest gains. The yield on the 10-year Treasury note fell to 2.6 percent from 2.71 percent — a sign that investors think the economy remains sluggish and might need continued help from the Federal Reserve.

The Fed will review the July employment data in deciding whether to slow its $85 billion a month in bond purchases in September, as many economists have predicted it will do.

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